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The central bank of Philippines (BSP) is expected to keep its monetary policy unchanged in the next months, according to Senior Economist Julia Goh and Economist Loke Siew Ting at UOB Group.

Key Quotes

“The continuing downshift in inflation keeps real interest rates negative and the door open for further policy rate cuts. However, Bangko Sentral ng Pilipinas (BSP), in its latest Oct. monetary policy statement, sounded more upbeat on the global and domestic economic outlook, while BSP Governor keeps on hinting at status quo in monetary policy for some time.”

“Hence, we stick to our view that BSP will leave its overnight reverse repurchase rate unchanged at 2.25% through 2021. The next monetary board meeting is on 19 Nov.”